Cache Logistics Trust

Cache Logistics Trust: Announced a good set of 2Q13 results which was in-line. DPU at 2.15c, +8% y/y while NPI at $19.6m, +17% y/y. Result brings 1H13 DPU to 4.38c, +8% and NPI to $39.6m, +15%. Increase in NPI was primarily attributable to rental contributions from new properties and improved performance from existing assets due to rental escalation. Group's latest acquisition 'Precise Two', provided a full quarter’s rental contribution, while its total portfolio remains fully occupied, with no renewal risk for this year. Balance sheet remains fairly strong with a leverage ratio of 29.2% Going forward, grp note that growth in developing Asia will remain sluggish this year and next amid a slower expansion in China and muted export demand from advanced nations. Despite this and concerns of interest rate hikes, believes Cache’s quality portfolio, but strong Sponsor support and prudent capital management should provides a solid foundation to continue to deliver sustainable returns for the full financial year. At current price, trades at 6.9% yield and 1.3x P/B OCBC maintains Buy with $1.40 TP